Robinson Corporation manufactures custom cabinets for kitchens. It uses an actual costing system with two direct cost categories long dash direct materials and direct manufacturing labor long dash and one indirect-cost pool, manufacturing overhead costs. It provides the following information for 2017.

Budgeted manufacturing overhead costs

$924,000

Budgeted direct manufacturing labor-hours

33,000

hours

Actual manufacturing overhead costs

$1,176,000

Actual direct manufacturing labor-hours

28,000

hours

Calculate the cost of the 32 Rooney Drive job using actual costing based on the following information:

Actual direct materials cost

$3,800

Actual direct manufacturing labor

140

hours

Actual direct manufacturing labor rate

$19

per hour

Begin by calculating the actual manufacturing overhead rate. (Assume the cost allocation base is direct labor hours.)

 

 actual manufacturing overhead rate